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Seven star residences in demand!
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Apartments in premium segments are targeted at high-end customers who appreciate luxury and exclusivity. Why are people willing to pay an astronomical price for a dwelling? It’s much more than just snob value, finds out NANDHINI SUNDAR
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While the IT boom changed the Garden City from its laid-back ways to an important destination on the global map, a silent simultaneous transformation was taking place in its housing structure, with its quaint old bungalows and picturesque independent houses giving way to large apartment complexes promising a lifestyle befitting its upwardly mobile residents.
What started off as multiple dwelling units to negate soaring land prices over the years metamorphosed into complexes offering a lifestyle in accordance with different budget segments. Soon, the kind of facilities on offer in each complex became the bone of contention, each trying to outbid the other in terms of facilities and perceived luxurious living.
This concept has now taken on a premium connotation, so as to set individual developments apart from the run- of-the-mill variety. And this segment certainly does not come cheap as it is targeted at the ultimate high-end customer who is able to recognise and appreciate such luxury and exclusivity, at the same time willing and capable of paying that price.
Ideas of exclusivity
Talk about a state-of-the-art club house to a high-end customer and he is likely to tell you that it is available in every second apartment complex in the city. But tell him that you are referring to an individual pool that comes heated, a mini golf course, him being the only one on his floor which offers a panoramic view of the city and he is likely to sit up and take notice. For, that is the kind of facilities he is looking for and yes, willing to shell out whatever it costs.
And when it comes to money, we are talking in the range of Rs. 6 crore upwards. And this can go up to Rs. 13 to 14 crore for a single apartment or a villa, depending upon the premium value and yes, the snob factor. Altius, Espana by Mantri Developers and the soon-to-be launched Chaithanya Swojas by Chaithanya Projects fall into this category. Says Guru Prasad, Joint Managing Director, Chaithanya Projects, “The high-end customer is extremely discerning and looks primarily for privacy and exclusivity. This can manifest as a unique design of the apartment or villa, up-to-date interiors with perhaps the latest electronic and security features, a private pool, steam, sauna, Jacuzzi.”
Though facilities such as a golf course or a resort setting need not be mandatory, the dwelling unit should be totally secluded and afford very distinctive features that would set it apart from other developments. And these features should depict a lifestyle that is far from the ordinary.
While he lays accent on the luxurious, yet exclusive lifestyle offered, he is also quick to emphasise the role played by location in determining the price. “An apartment in a prime location in the CBD with even part of those features will be considered special as space in such areas sells at a premium. Besides, it may not be practical to offer a villa with an individual pool in the heart of the city. In such cases, an apartment providing maximum privacy and exclusivity with modern facilities would command a high price.”
Crucial need factors
While facilities offered have an important role to play, the crucial factor would be location, says Indira, Vice-President, Marketing, Brigade Group. “Customers are very particular about location and sometimes, this need not be within the CBD. It could be in any particular area that the client fancies. And when a development in such a location is offered with unique features and hi-tech facilities, it is certain to command a premium.”
Says Snehal Mantri, Director-Marketing, Mantri Developers, “While it is important to offer exclusive high-end facilities in such developments, it is important to reduce the number sharing such facilities. A customer paying a premium does not want to wait to use the common facilities.”
Cutting down on the number of residences in such a development invariably lends a snob value to it. However, the price accorded to snob value is not substantial, contends Snehal. “Though snob value has a part to play in determining the price, the customer is looking more towards living amongst like-minded people. This is where personally choosing the buyers plays an important part. This not only removes speculative interest, but also ensures there is full occupancy in the complex. The occupancy rate in such developments plays a crucial role in determining its value as the number of dwelling units is few.”
Adds Guru Prasad, “Speculative interest in such a development is almost non-existent as it invariably attracts the end user who evinces interest in it because of a certain lifestyle that it promises.”
Concurs Snehal, “unlike lower-rung and middle-rung apartments where the market is large both in terms of sale as well as rental, a premium development targets a very narrow section of customers. Room for speculation is hence minimal here.”
Significant market exists
Given the narrow range of customers that such developments target, is there a market for such in the city? Says Indira, “Customers are mostly ones who have lived abroad and tasted a particular lifestyle. They look to these developments which promise a similar lifestyle. In Bangalore, this clientele forms quite a significant segment.”
Adds Snehal, “While the number appreciating and aspiring for such a lifestyle is significant, developments offering it are few. There is a gap between demand and supply and this in turn increases the premium value of such developments.” Agrees Guru Prasad, “there is a sizeable market in this segment waiting to be tapped. The future should see more of such premium developments.”
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